Russian Inflation Accelerated to 11-Month High 8.1% in November

Dec. 3 (Bloomberg) -- Russia’s inflation rate rose to the
highest in 11 months in November, putting pressure on the
central bank to increase interest rates to keep a lid on
consumer-price growth.

Inflation gained to an annual 8.1 percent, compared with
7.5 percent in October, the Federal Statistics Service said in
an e-mailed statement today. The median estimate in a Bloomberg
survey of 15 economists was for 8 percent. Prices advanced 0.8
percent in the month.

Annual inflation is increasing for the fourth month after
the worst drought in at least half a century crippled
agriculture and drove up food prices. Inflation risks “due to
monetary factors” are at an acceptable level, the central bank
said in a statement on Nov. 26, when it kept its main interest
rates at a record low for a sixth month.

“As soon as we see some growth” in demand-side inflation,
Bank Rossii could react on three fronts, First Deputy Chairman
Alexei Ulyukayev said in an interview in London on Dec. 1.
“First, the policy rate; second, the reserve requirements; and
third, the exchange rate performance. We’ll be watching the
situation and make our decision accordingly.”